How do Open Source software companies respond to institutional pressures? A business model perspective

2017 ◽  
Vol 30 (4) ◽  
pp. 534-554
Author(s):  
Khaireddine Mouakhar ◽  
Albéric Tellier
Keyword(s):  
Open Source ◽  
Business Model ◽  
Open Source Software ◽  
Business Models ◽  
Institutional Environment ◽  
Institutional Pressures ◽  
Strategic Choices ◽  
Content Type ◽  
Software Companies ◽  
Key Resources

Purpose Open Source software companies (OSSCs) are confronted with institutional pressures from Open Source software (OSS) communities. They must find an acceptable balance between the expectations of these communities and their own business model. However, there are still few studies that try to analyse the OSSC business models. The purpose of this paper is to highlight OSSC typical business models by using rich empirical data. Design/methodology/approach The methodology is based on a combination of quantitative analysis of a sample of 66 OSSCs and qualitative analysis of three typical situations resulting from that sample. Findings The quantitative study enables the authors to highlight three typical business models. The in-depth study of three typical cases enables the authors to specify these OSSC business models. The authors can distinguish four key dimensions: the relationship developed with the OSS communities, the strategic manoeuvres made, the key resources and competitive positioning. Research limitations/implications The results indicate that it is possible for firms to accommodate both profit and non-profit logics using different strategic manoeuvres to position themselves with regard to the Open Source institutional environment. Such accommodation requires the development of key resources and the adoption of suitable competitive positioning. Practical implications This study allows the authors to highlight two main practical contributions for OSSCs’ directors. First, the different manoeuvres identified may help them to ensure coherence between their strategic choices and the business model chosen. Second, the results can help OSSC founders identify value creation mechanisms more clearly by analysing four key variables. Originality/value This paper provides new insight about OSSCs business models. It aggregates four dimensions that provide a more “fine-grained” analysis of business models, while other studies often emphasise one dimension (usually the regime of appropriability).

A dynamic business model for Turkish techno parks: looking through the lenses of service perspective and stakeholder theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gülçin Polat
Keyword(s):  
Business Model ◽  
Stakeholder Theory ◽  
Business Models ◽  
Institutional Environment ◽  
Content Type ◽  
Dynamic Framework ◽  
Business Model Canvas ◽  
Functional Differences ◽  
Theoretical Perspectives ◽  
Service Perspective

Purpose The purpose of this paper is to analyze the business model of techno parks (TPs) in Turkey and shed light on the value co-creation in TPs in the light of the service perspective and stakeholder theory. Design/methodology/approach In this conceptual paper, a generic business model canvas for Turkish TPs has been elicited based on an in-depth review of the literature. Then, the functioning of the model and the nature of value co-creation have been viewed through the lenses of service perspective and stakeholder theory, and then the relationships and flows between the components of the business model have been visualized with a dynamic model. Findings The institutional environment leads Turkish TPs to have similar business models with functional differences. The value is co-created by stakeholders in TPs and value co-creation depends on the skills, competencies and cooperative efforts of all actors involved in the functioning of the business model. Practical implications This paper provides insight for TP management companies to improve their business models, for policymakers to refine institutional framework to enable effective functioning of TPs and for stakeholders to understand their role in value co-creation. Originality/value This paper provides a dynamic framework and a model for understanding business models of TPs and the value co-creation process, which is an understudied area, especially in a developing country context. It also extends the business model and value co-creation literature in the context of TPs by integrating multiple theoretical perspectives.

The amazonisation of second hand technical equipment: Topotrade case

2020 ◽  
Vol 10 (2) ◽  
pp. 1-19
Author(s):  
Aliaa Khoury ◽  
Nayla Menhem ◽  
Liliane Elias Youakim ◽  
Yara Salame
Keyword(s):  
Business Model ◽  
Undergraduate Students ◽  
Business Models ◽  
Scale Up ◽  
Technical Equipment ◽  
Market Place ◽  
Strategic Choices ◽  
Content Type ◽  
Academic Level ◽  
Biomedical Equipment

Learning outcomes This case reflects a classic approach to entrepreneurship based on entrepreneurial resources and opportunities. It also provides a vehicle for discussing the key features of a business model. It also addresses key strategic choices such as whether to replicate a business model or not. Case overview/synopsis This case study sets out the story of an entrepreneur: Zein Rachidi. It describes his history and the key milestones in his professional development until the creation and development of his own startup “Topotrade” the first online market place for used topography equipment. It also exposes his development plan, his will to scale up his business by replicating the same business model of Topotrade in a new market, that of used biomedical equipment. Complexity academic level This case is written mainly with a view to its use in the context of entrepreneurship courses for undergraduate students in management, as well as for entrepreneurs who can compare Zein’s trajectory to their own. This case is designed for students also suitable for courses in basic strategy, strategy and change and disruptive business models. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Business model innovation in small- and medium-sized enterprises

2019 ◽  
Vol 30 (8) ◽  
pp. 1127-1142 ◽  
Author(s):  
Julian Marius Müller
Keyword(s):  
Business Model ◽  
Industry 4.0 ◽  
Business Models ◽  
Customer Relationships ◽  
General Level ◽  
German Industry ◽  
Exploratory Research ◽  
Content Type ◽  
Business Model Canvas ◽  
Key Resources

Purpose Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user. Design/methodology/approach The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users. Findings The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships. Research limitations/implications Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level. Practical implications Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users. Originality/value The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.

Business model innovation from the strategic posture perspective

2018 ◽  
Vol 30 (1) ◽  
pp. 38-65 ◽  
Author(s):  
Oussama Ammar ◽  
Philippe Chereau
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Dynamic Consistency ◽  
Strategic Choices ◽  
Content Type ◽  
Strategic Posture ◽  
Adaptive Cycle ◽  
Path Dependent ◽  
Model Components

Purpose This paper aims to identify the differentiated paths followed by firms to innovate in business models, among four different strategic postures and also to determine the innovation interactions between business model components, among strategic postures. The authors intend to highlight the differentiated patterns of business model innovation (BMI) in each strategic posture and provide guidance to small and medium enterprises (SMEs) managers regarding the suitable alignments of business model components when they innovate in their business model. Design/methodology/approach The research model developed and tested in this work uses a composite model that borrows from the logic of Miles and Snow’s cycle of adaptive strategic choices as well as Demil and Lecocq’s perspective of permanent change within and between components of a business model. The authors’ model is designed first to encompass the differentiated patterns characterizing the relationships between the strategic posture of defender, prospector and analyzer profiles and the related innovation attributes of their business model components. The study was conducted with independent French manufacturing SMEs ranging from 10 to 250 employees in size and having revenues below €50m (European Commission, 2007). The analysed sample includes 169 firms from 14 sectors representative of French manufacturing SMEs. Findings Results confirm the differentiated propensity to adopt specific BMI behaviours among strategic postures. The authors also highlight the differentiated interactions between and within BMI components. These results suggest that SMEs tend to leverage specific BMI components related to their entrepreneurial, engineering and administrative choices. Thus, firms tend to evolve in a posture-specific, path-dependent dynamic consistency in which BMI attributes interact towards a limited set of alternatives, thus anchoring the new business model into strategic choices. It has been shown that the predictability of strategy–BMI alignment is contingent on the level of fit between empirically derived strategic profile attributes and Miles and Snow’s ideal profile attributes. Research limitations/implications This paper investigates strategy–BMI alignments without addressing such alignments from the standpoint of firm performance. Still, performance from a BMI perspective lies in the ability of the firm to sustain the dynamic consistency of its business model components by identifying the effects of change in interactions between and within components on overall BM performance. Further studies should explore dynamic consistency as a means for firms to generate and maintain performance by innovating in their business model when facing specific contingencies. The conceptual framework designed for the present research seems appropriate for conducting such an investigation on the performance implications of strategy–BMI fit. Practical implications This research offers insights regarding manufacturing SMEs seeking guidance when changing business strategy. Indeed, by combining Miles and Snow’s configurational framework of strategic postures with Demil and Lecocq’s RCOV BM framework, the authors provide insights that can bridge the gap between intended strategy and realized strategy. The authors suggest that when realizing new strategic choices, SMEs should favour behaviours of BMI that are likely to fit the new intended strategic posture. Accordingly, the authors introduce a set of field-based BMI alignments specific to firms’ strategic posture to support the strategic management of innovation in SMEs. Originality/value By unravelling the alignments between strategic posture and business model innovation, this work contributes to enlightening the dynamics of Miles and Snow’s adaptive cycle. Indeed, viewing Miles and Snow’s typology from the configurational perspective of BMI provides a clearer picture of the adaptive cycle through which BMI reflects the path-dependent process of the formation of the firm’s strategic posture through the transformation of its business model.

scholarly journals Six ways to build circular business models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nancy Bocken ◽  
Paavo Ritala
Keyword(s):  
Business Model ◽  
Resource Use ◽  
Business Models ◽  
Strategic Decisions ◽  
Strategic Choices ◽  
Value Capture ◽  
Content Type ◽  
External Stakeholders ◽  
Different Types ◽  
Business Cases

Purpose Circular business models can improve resource use in a financially and environmentally feasible way. However, companies struggle to choose among the vast variety of ways to achieve circularity within a business model. The purpose of this paper is to offer a pragmatic guide for making strategic decisions on circular business models. Design/methodology/approach This paper develops a conceptual model of six different strategic approaches to circular business models and provides examples to business cases and practice to illustrate these. Findings This study identifies two critical strategy choices companies should make. First, an innovation strategy addresses the extent to which circularity is achieved with internal or external stakeholders. Second, a resource strategy addresses how companies achieve circularity by narrowing, slowing or closing resource loops. Using examples from business practice, this study illustrates how the combinations of these two strategies can be used to design competitive circular business models. Key managerial questions are also identified to help decide upon a feasible strategy for circular business model innovation. Originality/value While different types of circular business models have been described, it is less clear what the strategic choices are that companies need to make to find feasible business cases for circularity in terms of value proposition, value creation and delivery and value capture. This study outlines these through a “circular business model strategy framework”.

Tactical and strategic choices in business models: evidence from a Danish fashion outlet

2015 ◽  
Vol 19 (3) ◽  
pp. 274-289 ◽  
Author(s):  
Anders P. Haubro ◽  
Henrik A. Lomholt ◽  
Rainer Lueg ◽  
Sverre V. Nielsen ◽  
Ulrik Knudsen
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
Future Research ◽  
Small Company ◽  
Strategic Choices ◽  
Content Type ◽  
Competitive Process ◽  
Process Framework ◽  
Positive Effect

Purpose – The purpose of this paper is to explain how tactical choices create value within a business model of a small company in the fashion outlet industry. Design/methodology/approach – The generic two-staged competitive process framework from Casadesus-Masanell is used to analyze the fashion retailer MyFashionOutlet. Findings – This paper argues that tactical choices made within a business model have a positive effect on the revenue of this company. Originality/value – As to practice, the findings provide better insights into the levers of change within a constant business model. For academics, the authors provide guidelines for applying the framework to future research and identify potential limitations of the use.

Open Source Software and the Corporate World

2009 ◽  
pp. 2338-2345
Author(s):  
Sigrid Kelsey
Keyword(s):  
Software Development ◽  
Open Source ◽  
Business Model ◽  
Open Source Software ◽  
Business Models ◽  
Strong Support ◽  
Corporate World ◽  
Quality Product ◽  
The Relationship ◽  
Common Misconceptions

This chapter discusses various ways that open source software (OSS) methods of software development interact with the corporate world. The success achieved by many OSS products has produced a range of effects on the corporate world, and likewise, the corporate world influences the success of OSS. Many times, OSS products provide a quality product with strong support, providing competition to the corporate model of proprietary software. OSS has presented the corporate world with opportunities and ideas, prompting some companies to implement components from the OSS business model. Others have formed companies to support and distribute OSS products. The corporate world, in turn, affects OSS, from funding labs where OSS is developed to engaging in intellectual property disputes with OSS entities. The consumer of software is sometimes baffled by the differences in the two, often lacking understanding about the two models and how they interact. This chapter clarifies common misconceptions about the relationship between OSS and the corporate world and explains facets of the business models of software design to better inform potential consumers.

Business Models in Open Source Software Value Creation

2011 ◽  
pp. 1103-1114
Author(s):  
Marko Seppänen ◽  
Nina Helander ◽  
Saku Mäkinen
Keyword(s):  
Open Source ◽  
Business Model ◽  
Open Source Software ◽  
Value Creation ◽  
Business Models ◽  
Essential Elements ◽  
New Business ◽  
General Business

This chapter explores how the use of a business model enables value creation in the open source software (OSS) environment. We argue that this value can be attained by analyzing the value creation logic and the elements of potential business models emerging in the OSS environment, since profitable business is all about creating value and capturing it properly. Open source (OS) offers one possibility for firms that are continuously finding new opportunities to organize their business activities and increase the amount of value they appropriate according to their capabilities. Furthermore, the concept of a business model is considered a tool for exploring new business ideas and capturing the essential elements of each alternative. We propose that a general business model is also applicable in the context of OSS, and we provide a list of questions that may help managers deal with OSS in their businesses.

Open Source Software and the Corporate World

2011 ◽  
pp. 570-577 ◽  
Author(s):  
Sigrid Kelsey
Keyword(s):  
Software Development ◽  
Open Source ◽  
Business Model ◽  
Open Source Software ◽  
Business Models ◽  
Strong Support ◽  
Corporate World ◽  
Quality Product ◽  
The Relationship ◽  
Common Misconceptions

This chapter discusses various ways that open source software (OSS) methods of software development interact with the corporate world. The success achieved by many OSS products has produced a range of effects on the corporate world, and likewise, the corporate world influences the success of OSS. Many times, OSS products provide a quality product with strong support, providing competition to the corporate model of proprietary software. OSS has presented the corporate world with opportunities and ideas, prompting some companies to implement components from the OSS business model. Others have formed companies to support and distribute OSS products. The corporate world, in turn, affects OSS, from funding labs where OSS is developed to engaging in intellectual property disputes with OSS entities. The consumer of software is sometimes baffled by the differences in the two, often lacking understanding about the two models and how they interact. This chapter clarifies common misconceptions about the relationship between OSS and the corporate world and explains facets of the business models of software design to better inform potential consumers.

Business Models in Open Source Software Value Creation

2011 ◽  
pp. 578-589 ◽  
Author(s):  
Marko Seppänen
Keyword(s):  
Open Source ◽  
Business Model ◽  
Open Source Software ◽  
Value Creation ◽  
Business Models ◽  
Essential Elements ◽  
New Business ◽  
General Business

This chapter explores how the use of a business model enables value creation in the open source software (OSS) environment. We argue that this value can be attained by analyzing the value creation logic and the elements of potential business models emerging in the OSS environment, since profitable business is all about creating value and capturing it properly. Open source (OS) offers one possibility for firms that are continuously finding new opportunities to organize their business activities and increase the amount of value they appropriate according to their capabilities. Furthermore, the concept of a business model is considered a tool for exploring new business ideas and capturing the essential elements of each alternative. We propose that a general business model is also applicable in the context of OSS, and we provide a list of questions that may help managers deal with OSS in their businesses.

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